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NEW YORK; HIS NOSE KEEPS GROWING

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Michaelson keeps telling stories about himself that, one after another, begin to unravel somewhat.

This wouldn't be such a bad thing if Mr. Michaelson's profession were master of illusion. The problem here is that he has presented himself as a 33-year-old millionaire whiz kid of an investment banker, and Governor Cuomo has nominated him for the state's top economic job.

It's actually two jobs he would hold down if approved by the State Senate - that of Commerce Commissioner and, in addition, the newly created czar-like position of Director of Economic Development. The latter post, designed to bring coherence to a fragmented development bureaucracy, will contain the real power. It will mean that for the first time, 11 state agencies and authorities and 22 related departments will report to one person on the Governor's staff. Mr. Michaelson's office in the executive chamber, on the second floor of the Capitol, is right across the hall from the Governor's. His access is real.

Mr. Michaelson's trouble began last week when, as a Senate committee began his confirmation hearings, reporters for The New York Times and Newsday began to look into the biographical information he had furnished. They found disquieting discrepancies at almost every turn.

He said, for example, that he had been ''a financial adviser to the Vatican.'' The reality was that he had been a minor employee at the London concern of Morgan, Grenfell & Company, which was doing financial advisory work for the Vatican, and he had worked on the account. He says now that his description of his role was not unusual in banking circles and in fact was ''normal'' Wall Street usage. He also said he had been a principal (someone who holds stock in the firm) in the investment banking concern of Drexel Burnham Lambert New York Inc. - the company he left last November to join the Cuomo administration as chief of economic development (a job that does not require Senate approval although the post it is linked to, Commerce Commissioner, does). In fact he was not a principal but rather one of 30 vice presidents. Drexel Burnham officials say he would have become a principal in January, had he stayed. ''I had earned that position,'' says Mr. Michaelson, ''so I had no problem saying it.''

Another representation he has made is that he was an adviser to former Governor Carey. According to an account in Newsday, ''Michaelson said he feels comfortable describing himself as a Carey adviser because, at the time, he was providing advice to then-Secretary of State Cuomo. Some of the work for Cuomo, Michaelson said, undoubtedly ended up on then-Governor Carey's desk.''

The above are part of a longer list of departures from total candor that he has presented over the years in his job resumes. Someone in his defense might argue that resume embellishments are not that uncommon among people trying to get to the top in a competitive job market. But what is uncommon is the consistent pattern of such tinkering with fact throughout Mr. Michaelson's career. He seems to see nothing wrong with it and refuses to acknowledge error, even that of overeagerness in pursuit of success. To The Times, he said: ''There aren't any discrepancies. I haven't lied, cheated, stolen.'' Worse, the Governor's office seems to be going along with it, too. A top aide to Mr. Cuomo said the inconsistencies were ''a tempest in a teapot'' and ''no big deal.'' The Governor may feel a strong sense of loyalty to Mr. Michaelson because the young man has been helping him in political campaigns as far back as 1977, providing position papers that impressed Mr. Cuomo. When Mr. Cuomo was elected Governor in 1982, Mr. Michaelson was a key member of the transition team. Moreover, everyone agrees that Mr. Michaelson is very bright, had a distinguished education and achieved success in the financial world. But none of this will close the widening credibility gap the Governor now faces with this appointee. What kind of public confidence would Mr. Michaelson inspire as the overseer of such major state enterprises as Battery Park City and the Urban Development Corporation if he is unable to distinguish between truth and exaggeration now and unable to admit his lapses? The longer the Cuomo administration tries to pretend this is ''no big deal,'' the bigger the deal it will become. B

A version of this op-ed appears in print on February 19, 1985, on Page A00023 of the National edition with the headline: NEW YORK; HIS NOSE KEEPS GROWING. Today's Paper|Subscribe